All other things equal yieldtomaturity10 which of the follow

All other things equal (yield-to-maturity=10%), which of the following has the longest duration?

(A)A 21-year bond with a 10% coupon.

(B) A 20-year bond with an 11% coupon.

(C) A 21-year zero-coupon bond yield 10%.

(D)A 20-year zero-coupon bond yield 11%.

Solution

this is quite straigh forward answer

(C) A 21-year zero-coupon bond yield 10%

is correct answer !!!!!!!

All other things equal (yield-to-maturity=10%), which of the following has the longest duration? (A)A 21-year bond with a 10% coupon. (B) A 20-year bond with an

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site